Source: Reuters
FCC Slams Door On Open-Cable Net
Agency Rules That Small California ISP Doesn't Have Legal Right To Use Cable TV Lines Owned By Other Companies To Offer Its Own Internet Service
A small California Internet service provider on Friday, February 18, 2000 lost its long-shot attempt to offer Internet service over cable television lines owned by other companies. The Federal Communications Commission (FCC) determined that Internet Ventures Inc. could not use a law requiring cable companies to lease channels to unaffiliated programmers to offer its own Internet service. ""From the start, our campaign has been a true David-and-Goliath story,"" said Internet Ventures President Don Janke. ""Unfortunately, David had only to deal with Goliath, not with the FCC."" Under U.S. law a cable television system operator with at least 36 channels must set aside some channels to be leased by unaffiliated programmers. The provision was intended to prevent cable operators from gaining a complete lock on the programming market. But Internet Ventures argued that since people could watch TV-like streaming video via its Internet service, it should be allowed to lease a cable channel and offer its Internet service.